Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity & Inclusion
• Responsible supply chain
• Employee well-being
• Community investment

Environmental Achievements

• 56 percent reduction in CO2 emissions per guest night since 1996 (until 2019)
• 28 percent reduction in water use since 1996 (until 2019)
• 27 percent reduction in waste since 1996 (until 2019)
• 100% renewable energy from hydroelectric sources at all Scandic hotels in 2020
• Scandic Aarhus City named Denmark’s most climate-friendly hotel according to momondo Climate Award 2021

Social Achievements

• Launched I Travel With Care program encouraging sustainable guest travel
• Scandic Sweden topped the Sustainable Brand Index in the hotel category for the 11th year running
• Scandic Norway joined the Turn off the Tap initiative to save water
• Offered students discounted long-term accommodation
• Continued Scandic in Society community involvement program with 357 activities in 2021

Governance Achievements

• Board of Directors and Executive Committee adopted new sustainability goals
• Sustainability integrated into Scandic’s business strategy, key strategies, business planning, and brand platform
• Implemented updated sustainability requirements for suppliers

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to high raw material and energy prices and component shortages
• Staff shortages in the hospitality industry
• Market fluctuations due to the pandemic and reintroduction of restrictions
• Climate change impacts (physical risks and transition risks)
• Supplier compliance with sustainability requirements

Mitigation Strategies

• Adjusted rental costs through negotiations with property owners (900 MSEK reduction)
• Secured financing through an issue of convertibles (approximately 1.6 billion SEK)
• Implemented cost reduction measures
• Developed alternative sourcing strategies
• Developed a climate strategy for suppliers with requirements for transparent emissions reporting and science-based goals

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Sustainability requirements for suppliers (environmental and social criteria)
• Precautionar y principle when evaluating materials and substances

Climate-Related Risks & Opportunities

Physical Risks

• Flooding and other weather-related damage

Transition Risks

• Increased energy costs
• New regulations and taxes
• Changes in customer behavior

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, Level Core, UN Global Compact

Certifications: Nordic Swan Ecolabel

Third-party Assurance: Ethos International (AA1000AS v3)

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 17

Initiatives contribute to these goals through various programs and policies related to health, gender equality, clean water and energy, decent work, sustainable cities, responsible consumption, climate action, and partnerships

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Scandic Sweden topped the Sustainable Brand Index for the 11th year running
• Scandic Aarhus City named Denmark’s most climate-friendly hotel

Environmental Metrics

ESG Focus Areas

• Climate change
• Health, diversity and inclusion
• Food & beverage
• Rooms and interiors
• Sustainable hotel operations
• Responsible partner in society

Environmental Achievements

• Reduced CO2e emissions by 29 percent per square meter compared with the base year 2019.
• Reduced food waste by 14 percent (excluding Sweden) compared with 2019.
• Reduced water consumption by 7 percent between 2019 and 2022.
• 76 percent of hotels were certified by the Nordic Swan Ecolabel by the end of 2022.

Social Achievements

• Scandic ranked at the top when it comes to diversity and inclusion in 2022.
• 63 percent of Scandic’s team members were women and 37 percent were men at year-end.
• More than 120 nationalities are represented at Scandic hotels.
• Launched initiatives to prioritize health and well-being as a Group-wide focus area for 2023.

Governance Achievements

• Scandic received a gold medal in EcoVadis’ annual sustainability assessment, putting it among the top 5 percent most sustainable companies in the world.
• Scandic won five out of seven awards in the Danish Climate Awards.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Staff shortages in the service industry
• Increased energy costs
• Macroeconomic uncertainty
• Climate change (physical and transition risks)
• Supplier compliance with sustainability requirements
• Maintaining brand relevance and customer perception
• Ensuring employee safety and well-being
• Increasing reporting requirements for sustainability

Mitigation Strategies

• Developed alternative sourcing strategies
• Adapted staffing to demand
• Implemented energy-saving installations
• Secured more balanced lease agreements with market collapse clauses
• Strengthened IT security, data protection, and information security
• Strengthened procedures and organization related to IT security, data protection and information security
• Invested in digital solutions for guests
• Improved the value of Scandic’s loyalty program
• Increased transparency on website
• Invested in employee training and development
• Implemented a security program including crisis management
• Regular safety audits and self-inspections
• Anonymous whistleblowing function
• Continuous dialogue with property owners
• Training program to help hotel employees detect trafficking or prostitution
• Clear sustainability criteria for investing in new hotels

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Purchasing Guidelines
• Supplier Code of Conduct
• Sustainability screening for each purchasing project
• Precaution principle when evaluating materials and substances

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Other weather-related damage

Transition Risks

• Increased energy costs
• New regulations and taxes
• Changes in customer behavior

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: Nordic Swan Ecolabel

Third-party Assurance: Ethos International (AA1000AS v3)

UN Sustainable Development Goals

• 3, 5, 6, 7, 8, 9, 11, 12, 13, 17

Initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Room Collection concept with circular design and recycled materials

Awards & Recognition

• Gold medal in EcoVadis sustainability assessment
• Five awards in Danish Climate Awards

Environmental Metrics

ESG Focus Areas

• Health, diversity and inclusion
• Food & beverage
• Rooms and interiors
• Sustainable hotel operations
• Good corporate citizen

Environmental Achievements

• 90 percent of Scandic’s hotels were certified according to the Nordic Swan Ecolabel’s new criteria.
• CO2e emissions per square meter have dropped by 9 percent for Scopes 1 and 2 since 2019.
• Reduced water consumption by 10 percent compared with the base year 2019.

Social Achievements

• Scandic Denmark, LO (the Danish Confederation of Trade Unions) and the Danish Employers’ Association were awarded a prize for collaboration, recognizing efforts that create job opportunities for youth, individuals with foreign backgrounds and people with disabilities.
• Scandic Norway won the Matvettpriset for the most creative and goal-oriented measures to reduce food waste.
• Scandic won the Hotel Innovation Awards’ special sustainability prize.

Governance Achievements

• Recertification of all previously Nordic Swan Ecolabeled hotels according to new requirements.
• Implementation of a company-wide system for measuring food waste.
• Implementation of Oracle Hospitality OPERA Cloud, a complete cloud-based enterprise system.

Climate Goals & Targets

Environmental Challenges

• Inflation
• Macroeconomic uncertainty
• Tourism from Asia and Europe has not yet fully returned to previous levels
• Market for large conferences and trade fairs has not fully recovered
• Suppliers or subcontractors facing insolvency or delivery difficulties due to price increases or reduced demand

Mitigation Strategies

• Focus on maintaining high efficiency with good cost control while investing for the future
• Introducing market collapse clauses in new leases
• Continuously monitoring purchase prices and maintaining close cooperation between relevant functions
• Continuously following up on suppliers and evaluating new supplier alternatives
• Continuously optimizing its hotel portfolio

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Purchasing Guidelines
• Sustainable Food & Beverage Guidelines
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Altered weather conditions (flooding, damage to properties)

Transition Risks

• Increased energy costs
• New rules and taxes
• New emission taxes
• Restrictions on travel

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards 2021, EU Taxonomy

Certifications: Nordic Swan Ecolabel

Third-party Assurance: Ethos International (AA1000AS v3)

UN Sustainable Development Goals

• 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 17

Not disclosed

Sustainable Products & Innovation

• Scandic Go

Awards & Recognition

• Hotel Innovation Awards’ special sustainability prize
• Matvettpriset (Norway)